Latest Change USD/HKD Spot 7.7753 +0.0021 1-year USD/HKD Forward* -165 -2 Overnight Hibor 0.04% -1 bp 1-month Hibor 0.22% -1 bp 3-month Hibor 0.28% -1 bp 1-year Hibor 0.73% -4 bps 2-year EF Note 0.17% -11 bps 10-year EF Note 1.42% +4 bps *mid-point of bid-offer spread HONG KONG (Dow Jones)--The Hong Kong dollar fell against the U.S. dollar Thursday due to greenback demand from a major U.K. bank amid quiet trade. In late Asian trade, the U.S. dollar was at HK$7.7753, up from HK$7.7732 late Wednesday. The U.S. unit was fixed at HK$7.7755 earlier Thursday. Traders said they expect the U.S. dollar/Hong Kong dollar to remain range bound on shrinking transaction volume ahead of the year end. They said they expect the U.S. dollar to trade in a band of HK$7.7700 to HK$7.7770 Friday. "Many traders are in a 'wait-and-see' mood ahead of the [European Union] summit starting later in the day. Also, many market players have started their annual vacation leave and so the transaction volume has been very thin this week, leaving the U.S. dollar/Hong Kong dollar pair range bound," said a senior trader at a local bank. Another senior trader at a Chinese bank said, "A major U.K. bank bought some greenback on corporate demand. But trading volume is rather thin in general, which exaggerates the movement." The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 165 points to the spot rate, compared with a 163-point discount late Wednesday. -By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com

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